National Australia Bank plans to tip £700 million into Clydesdale Bank in order to meet the increased capital requirements the Financial Services Authority is imposing across the banking sector.The annual accounts for Clydesdale, lodged with Companies House in recent days, reveal the planned increased in capital. NAB also confirmed the plan when contacted yesterday.Clydesdale had shareholders equity of £2.2 billion at September 2008 and a tier one capital ratio of 7.4 per cent. The FSA's target and NAB's target ratio for Clydesdale isn't clear but presumably is at least nine per cent, given the target ratios for other banks.A month ago NAB sold $3 billion in new shares. The requirement for Clydesdale to raise new capital will thus account for about half of the additional capital raised by the group.The bank is making use of British government aid for wholesale funding though it is not planning to seek any direct investment from the government.In October Clydesdale sold £1.9 billion in covered bonds under the Special Liquidity Scheme of the Bank of England. Last week the bank sold £750 million in term debt backed by the government guarantee.While the annual accounts state that its plans "assume no capital raising" from the British government, the bank's chair, Malcolm Williamson, also wrote that "we are not ruling out the use of this or other government funding initiatives if we believe it is beneficial."